87R10622 CXP-D

By: Price H.B. No. 2467

A BILL TO BE ENTITLED

AN ACT

relating to the governing body and executive management team of the independent organization certified to manage the ERCOT power region.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

SECTION 1. Section 39.151, Utilities Code, is amended by amending Subsections (g) and (g-1) and adding Subsections (g-2), (g-3), and (g-4) to read as follows:

(g) To maintain certification as an independent organization under this section, an organization's governing body must be composed of persons specified by this section [and selected in accordance with formal bylaws or protocols of the organization. The bylaws or protocols must be approved by the commission and must reflect the input of the commission. The bylaws must specify the process by which appropriate stakeholders elect members and, for unaffiliated members, prescribe professional qualifications for selection as a member. The bylaws must require the use of a professional search firm to identify candidates for membership of unaffiliated members. The process must allow for commission input in identifying candidates]. The governing body must be composed of:

(1) the chairman of the commission as an ex officio nonvoting member;

(2) the counsellor as an ex officio voting member representing residential and small commercial consumer interests;

(3) the chief executive officer of the independent organization as an ex officio voting member;

(4) six market participants elected by their respective market segments to serve one-year terms, with:

(A) one representing independent generators;

(B) one representing investor-owned utilities;

(C) one representing power marketers;

(D) one representing retail electric providers;

(E) one representing municipally owned utilities; and

(F) one representing electric cooperatives;

(5) one member representing industrial consumer interests and elected by the industrial consumer market segment to serve a one-year term;

(6) one member representing large commercial consumer interests selected in accordance with the bylaws to serve a one-year term; and

(7) five members representing the public appointed by the governor to serve four-year terms who are unaffiliated with any market segment and who have no associations, including familial or professional associations, with energy producers or providers of any kind, with:

(A) one member who resides in a county with a population of less than 75,000;

(B) one member who resides in a county with a population of at least 75,000 but less than 250,000; and

(C) three members who reside in a county with a population of at least 250,000 [five members unaffiliated with any market segment and selected by the other members of the governing body to serve three-year terms].

(g-1) The presiding officer and vice presiding officer of the governing body must be one of the members described by Subsection (g)(7).

(g-2) Members of the organization's governing body required by Subsections (g)(4), (5), and (6) must be selected in accordance with formal bylaws or protocols of the organization. The bylaws or protocols must be approved by the commission and must reflect the input of the commission. The bylaws must specify the process by which appropriate stakeholders elect members and, for unaffiliated members, prescribe professional qualifications for selection as a member. The bylaws must require the use of a professional search firm to identify candidates for membership of unaffiliated members. The process must allow for commission input in identifying candidates.

(g-3) To qualify to serve as a member of the governing body under Subsection (g)(4), (5), (6), or (7), a person must have a primary residence within the geographic area of the power region served by the independent organization.

(g-4) To maintain certification as an independent organization under this section, an organization's chief executive officer and each member of the organization's executive management team must have a primary residence within the geographic area of the power region served by the independent organization.

SECTION 2. (a) Not later than December 1, 2021, the governor shall appoint members to the governing body of an independent organization certified under Section 39.151, Utilities Code, by the Public Utility Commission of Texas before September 1, 2021, to comply with Section 39.151, Utilities Code, as amended by this Act.

(b) The two members of the governing body of an independent organization certified under Section 39.151, Utilities Code, by the Public Utility Commission of Texas before September 1, 2021, who are initially appointed under Sections 39.151(g)(7)(A) and (B), Utilities Code, as amended by this Act, serve terms expiring February 1, 2025, and the three members who are initially appointed under Section 39.151(g)(7)(C), Utilities Code, as amended by this Act, serve terms expiring February 1, 2023.

(c) An independent organization certified under Section 39.151, Utilities Code, by the Public Utility Commission of Texas before September 1, 2021, shall hold elections and select new members as needed to modify the organization's governing body to comply with Section 39.151, Utilities Code, as amended by this Act, as soon as practicable, but not later than January 31, 2022.

(d) An independent organization certified under Section 39.151, Utilities Code, by the Public Utility Commission of Texas before September 1, 2021, shall ensure that the chief executive officer and executive management team of the organization comply with Section 39.151, Utilities Code, as amended by this Act, as soon as practicable, but not later than January 31, 2022.

(e) After January 31, 2022, the Public Utility Commission of Texas may decertify an independent organization whose governing body, executive management team, or chief executive officer does not comply with Section 39.151, Utilities Code, as amended by this Act.

SECTION 3. This Act takes effect September 1, 2021.